The delay is due to the need for an amendment to PAGCOR‘s charter, which is expected to be completed by 2025.

According to a report from the Philippine News Agency, Tengco explained that the privatization effort is part of a broader plan to professionalize the gaming industry. 

A key component of this strategy is the creation of a Gaming Academy, which will address the growing demand for skilled gaming and hospitality professionals. The academy aims to partner with Asian gaming education providers, offering opportunities to the Philippine workforce and those seeking gaming careers in other regions.

PAGCOR executives spoke about their plans for the Gaming Academy to AGB at a private event in Macau in June.

Privatization of Casino Filipino

PAGCOR expects to generate at least PHP50 billion ($893 million) from the privatization of its 45 self-run casinos across the country. The agency intends to shift its focus entirely to regulatory responsibilities, ensuring a level playing field for all stakeholders in the gaming industry.

To ease concerns about the impact on employees, Tengco assured that affected staff will receive compensation. A comprehensive retirement package will be provided, and the winning bidder will be required to absorb between 50 to 70 percent of the employees.

In the meantime, PAGCOR is prioritizing the modernization of its Casino Filipino venues, including upgrades to gaming facilities and new equipment acquisitions. Nearly 2,000 new slot machines are set to be delivered by mid-September. Partner lessors have also started renovating gaming venues to boost foot traffic and profitability.

The Philippine gaming regulator first announced its privatization plan in March 2023 at the ASEAN Gaming Summit. 

Maybank analyst Alexa Carvajal noted that PAGCOR casinos contributed only 7 percent to the country’s gross gaming revenue (GGR) for that year, suggesting that the privatization will likely have a limited impact on the broader market.

In its latest financial update, PAGCOR reported a 32.3 percent year-on-year increase in the country’s GGR for the second quarter, reaching PHP89.23 billion ($1.56 billion), with significant growth in the eGames sector.

However, revenue from PAGCOR-operated casinos (Casino Filipino) dropped by 14.8 percent year-on-year from a record high in the second quarter of 2023, falling to PHP4.2 billion ($73.33 million), marking a 10.41 percent sequential decline.